NAC645B.255. Minimum financial requirement for certain investors.

     1. Except as otherwise provided in subsection 5, before an investor, other than a financial or institutional investor, enters into a transaction with a mortgage broker or mortgage agent to acquire ownership of or a beneficial interest in a loan secured by a lien on real property by investing money, the investor must provide a statement on a form prescribed by the Division which verifies that the investor meets one or more of the following financial requirements:

     (a) The investor’s household net worth is more than $250,000, excluding any equity in any real property used as the investor’s primary residence at the time of the investment; or

     (b) The investor’s household net annual income was more than $70,000 for each of the previous 2 tax years, and there is a reasonable expectation of attaining or exceeding the same income for the current year.

     2. Except as otherwise provided in this subsection, an investor must also verify on the form prescribed by the Division that the investor’s total investments in loans secured by a lien on real property transacted by a mortgage broker or mortgage agent are not valued at more than 50 percent of the investor’s household net worth or household net annual income, whichever is greater. The Division may waive this requirement in writing.

     3. In the absence of knowledge to the contrary, a mortgage broker or mortgage agent is not responsible for determining the validity of an investor’s stated financial information and may rely on such information submitted by the investor.

     4. An investor shall verify on a form prescribed by the Division that the investor continues to meet the minimum financial requirement set forth in subsection 1 for each transaction subsequent to the first transaction.

     5. The provisions of this section do not apply to transactions of a mortgage broker or mortgage agent investing on his or her own behalf.

     6. As used in this section, “financial or institutional investor” has the meaning ascribed to it in NRS 90.240.

     (Added to NAC by Comm’r of Mortgage Lending by R057-08, eff. 4-23-2009)